Analyst Kicks Dead Horse, Cuts Ebay, Amazon (AMZN, EBAY)

Economic woes are going to slam e-tailers like Amazon (AMZN) and eBay (EBAY), says Bernstein Research analyst Jeffrey Lindsay, locking the barn door about a year after the horse left.

Lindsay downgraded both companies stocks to "market perform" from "outperform."

Reuters: "The vast majority of goods sold by Amazon are discretionary purchases," analyst Lindsay said, adding that while there might be an improvement towards the end of 2009, the company will be limited to 11 percent earnings growth and 12 percent revenue growth during 2009.

Worsening economic conditions overseas, especially in the European Union, and competition from offline retailers who have succeeded in avoiding heavy discounts during the holiday season further challenge the online retailer, the analyst said.